"Am I diversified?"

what's your objective? simple correlation matrix over last 800 days is. What are your weightings? Long/short?

Code:

Ticker       ABT      CPRT      FITB       HHH        HP       QSR       TKO       TTD
Ticker
ABT     1.000000  0.396738  0.371015  0.360328  0.182073  0.363213  0.205453  0.229559
CPRT    0.396738  1.000000  0.421044  0.460590  0.185963  0.388492  0.252211  0.470713
FITB    0.371015  0.421044  1.000000  0.548558  0.414330  0.346022  0.238004  0.338349
HHH     0.360328  0.460590  0.548558  1.000000  0.367918  0.428080  0.224498  0.443318
HP      0.182073  0.185963  0.414330  0.367918  1.000000  0.175268  0.168505  0.206524
QSR     0.363213  0.388492  0.346022  0.428080  0.175268  1.000000  0.178083  0.266121
TKO     0.205453  0.252211  0.238004  0.224498  0.168505  0.178083  1.000000  0.228569
TTD     0.229559  0.470713  0.338349  0.443318  0.206524  0.266121  0.228569  1.000000

efficient frontier min volatility portfolio showed this for same data

Code:

Expected annual return: 7.5%
Annual volatility: 17.3%
Sharpe Ratio: 0.32

 

OK... I am not making this up. Driving down the local "fast food alley" tonight... there was a line around the Burger King drive-thru... and I swear the CMG across the street, which also has a drive-thru for digital orders.... was a ghost town. It's just my inner Peter Lynch that never sleeps.

QSR is up about $3 from when I made this post. It's $65 now. I think it goes higher.

But keep an eye on the lines at not only BK, but also the local Popeyes Fried Chicken.

We'll revisit the Tim Horton's disaster that has held this stock down when Canada becomes our 51st state. Thank god they are shuttering those things hand over foot. What a waste of prime commercial U.S. real estate.
~Pete

 

Bit of a long time, no? Things can change a lot in 800 days. Well... you do you.

 

here's last 252 days

Code:

Ticker       ABT      CPRT      FITB       HHH        HP       QSR       TKO       TTD
Ticker
ABT     1.000000  0.206312  0.180151  0.124840  0.176805  0.286249  0.181432 -0.076310
CPRT    0.206312  1.000000  0.460200  0.351184  0.258025  0.210414  0.324439  0.289926
FITB    0.180151  0.460200  1.000000  0.537508  0.513560  0.259562  0.376286  0.343672
HHH     0.124840  0.351184  0.537508  1.000000  0.411280  0.292489  0.330304  0.345069
HP      0.176805  0.258025  0.513560  0.411280  1.000000  0.195270  0.283312  0.294546
QSR     0.286249  0.210414  0.259562  0.292489  0.195270  1.000000  0.243570  0.117277
TKO     0.181432  0.324439  0.376286  0.330304  0.283312  0.243570  1.000000  0.316342
TTD    -0.076310  0.289926  0.343672  0.345069  0.294546  0.117277  0.316342  1.000000

 

OMG! I see a minus sign... hallelujah.

 

Yup, I know what you mean.

But its good you limiting yourself here at ET to just about every other day patting yourself on the back for the calls you make. Wouldn't want to make a habit of it now would you you.

 

A risk parity allocation (based on the last year of data) is pictured below. Of course, risk parity doesn't make a lot of sense given these are all equities. Get some commodities and bonds in there baby! Mix it up